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Valued at $100 Million, Russian Charity Auction Platform CPAI Reaches 1 Million Users

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4 years ago

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CPAI is the first Russian innovator business to be valued at $100 million this this year. CPAI has surpassed ThredUp in transaction volume and is expected to be the next unicorn of online resale platform.

CPAI, after seed round on May 19, 2019, has its trading volume almost doubled each year. CPAI operates a one-stop second-hand trading market featuring online resale, charity auction and vertical recycling. Its award-winning business model adopts an innovative way of auction — one auction and one re-auction a day. Different from the traditional second-hand trading platform, the same commodity can be traded several times on CPAI platform, and the price of each transaction will be maintained in a fixed range until the buyer takes delivery of the goods.

What is the status of CPAI after this fund raise, according to its financial disclosure and strategy?

The Number of Users Exceeds 1 Million

For e-commerce platforms, number of users is a very important indicator. Since its launch in 2019, CPAI has seen steady growing in user base, with 710 thousand users worldwide in March 2020 and more than 1 million CPAI users by the end of 2020.

Trading volumes continued to grow, however, with heavy volumes in the domestic Russian market and light volumes in the European and US markets. According to data released by CPAI, its trading volume is shown below. Please note that the six-month period means a full fiscal year calculated backwards.

June 2019:3.1 billion rubles

June 2020:7.2 billion rubles

January 2021 to March 2021 (3 quarters in total) : 12.4 billion rubles

Based on this trend, it is expected that in June 2021, trading volume will exceed 2 billion rubles (about $240 million).

In 2020, after the outbreak of COVID-19, the online sales of some categories, especially groceries, increased significantly. Take, for example, Wildberries.Ru, one of the largest online platforms in Russia. Order number on Wildberries has almost doubled during the pandemic, which means every one in three Russian consumers has purchased from Wildberries. CPAI platform hosts at least 6,000 auctions a week; orders for second-hand items in circulation reach 1 million a year, combined with such growth rate, CPAI has a comfortable position in the market and shows promising growth.

Focus on “Talent” and “Marketing”

On the other hand, the number worth paying attention to is the operating loss of CPAI. Up to Q3 of this year, the operating loss was about 200 million rubles, of which the personnel cost was 360 million rubles (210% compared with cost in the same period last year) and the advertising cost was 1.28 billion rubles (154% compared with cost in the same period last year).

The Cambridge graduated Entrepreneur, Ivan Morozov, CEO of CPAI has stated that CPAI will not focus on short-term gains, but on medium – to long-term development, so big investments now are necessary for future growth. Even if the company went public, short-term profit improvements would not be on his mind.

This is in line with the fact that many big tech companies, like Twitter and Netflix, have been losing money for years in order to grow in the long run. So, to maximize long-term profit, investment in growth is the key.

Reflection: The Inspiration and Opportunity CPAI has brought

Recently CPAI has been recruiting engineers aggressively. This year, CPAI has started recruits outside Russia. It’s a great opportunity for whomever with relevant skills, as reportedly the annual salary offered by CPAI can reach 10 million rubles. 

On the other hand, why can CPAI attract so much traffic in the short term? We are very familiar with offline auctions in Southeast Asia, but in the post epidemic era, everything is going digital, and the business innovation of CPAI is in line with this trend. 2020 has accelerated the growth of user base, and this momentum ushers in the second wave of growth in the post epidemic era.

We are familiar with traditional auctions, but CPAI is truely unique here. Many entrepreneurs have good ideas of business, but having idea, technology and capital at the same time is a rare combination. Now with the raised fund and user base, CPAI will only embrace a faster development now, providing customers a safe space for their usual activities.

CPAI is actually not the first Russian business to do second-hand goods trading. FRIL offers this service a year before. However, CPAI quickly gained an upper hand with aggressive channel marketing, creating an image of the go to place for charity auction, thus attracting large number of users.

Future challenges for CPAI

Some media regards Rakuten as a strong competitor of CPAI, as Rakuten merged its two flea market apps (Rakuma & Fril) into a single App called Rakuma. Rakuten has always used low prices (Rakuma charges only 3.5 percent), existing members (about 95 million) and points to connect other Rakuten services, using all strategies to gain market share.

However, Rakuten’s victory in the price war usually occurs when its rival’s IT capability is weaker. This allows Rakuten to reduce manpower and streamline workflow to drive down cost. But CPAI’s IT capability is as good as, if not better than, Rakuten’s.

On the other hand, giving points back to members as Rakuten does is just an alternated form of price competition. Price wars will not bring benefit for the market in the long run, but only to squeeze profit margin and kill innovation.

The biggest challenge for CPAI is still from overseas. Will the investment be rewarded? Can trade volume in the US, European, and Southeast Asian market grow substantially? That’s what CPAI is going to focus on next.

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Alex Jacob

Alex Jacob is a literature author. He was born in Chicago. Alex passion is writing news articles. He writes number of articles and published it.

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Press Release

Diabetics Trust Launches Transparency Pledge to Revolutionize the Sale of Diabetic Supplies

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29 minutes ago

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December 24, 2024

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San Francisco, California, United States, 24th Dec 2024  – Diabetics Trust, a leading buyer of diabetic supplies, has unveiled its groundbreaking Transparency Pledge, setting a new standard in the industry. This initiative ensures that individuals looking to sell diabetic test strips, CGMs, and other supplies experience a streamlined, transparent, and hassle-free process.

The Transparency Pledge introduces clear guidelines, fair payouts, and fast payments within 1-2 business days of product verification. Unlike many competitors, Diabetics Trust eliminates hidden fees and ambiguous conditions, providing sellers with a reliable and predictable experience.

Commitment to Transparency and Customer Satisfaction

Diabetics Trust’s manager, James Mary, emphasized the company’s dedication to creating a fair marketplace.

“Our mission is rooted in transparency. We believe our customers deserve clarity, fairness, and efficiency throughout the entire process. This pledge reflects our commitment to delivering an honest and seamless experience.”

Addressing Rising Healthcare Costs

With the increasing burden of healthcare expenses, selling unused diabetic supplies has become a practical way for individuals to recover costs. Diabetics Trust not only empowers sellers to earn extra cash but also contributes to sustainability by redistributing quality supplies to those in need.

The company’s transparent process includes:

Fast Payments: We always try our best to process payments within 1-2 business days after verification. PayPal payments are usually instant. 

No Hidden Fees: Sellers know exactly what to expect upfront.

Return Option: Rejected items can be returned for a nominal fee.

A Step Towards Sustainability

By encouraging the resale of unused diabetic supplies, Diabetics Trust supports waste reduction and promotes access to affordable healthcare products.

About Diabetics Trust

Diabetics Trust is committed to empowering individuals through transparent, efficient, and ethical practices. The company specializes in buying diabetic test strips, CGMs, and lancets, ensuring customers receive the highest payouts with no surprises.

For more information on how to sell diabetic supplies, visit DiabeticsTrust.com. 

Media Contact

Organization: Diabetics Trust

Contact Person: James Mary

Website: https://diabeticstrust.com/

Email: Support@diabeticstrust.com

Country: United States

Release Id: 24122421849

The post Diabetics Trust Launches Transparency Pledge to Revolutionize the Sale of Diabetic Supplies appeared on King Newswire. It is provided by a third-party content provider. King Newswire makes no warranties or representations in connection with it.

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Press Release

HKFA’s 9th Anniversary Celebration Lights Up Kuala Lumpur with Unforgettable Gala and Global Trust Summit

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29 minutes ago

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December 24, 2024

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9th Anniversary Private Gala Dinner & Global Trust Summit 2024 wrapped up in Malaysia!

Kuala Lumpur, Malaysia, 24th Dec 2024 – On November 22, 2024, Hong Kong Fiduciary Association Limited (HKFA) proudly hosted its 9th Anniversary Private Gala Dinner & Global Trust Summit 2024 at the prestigious Diamond Ballroom in EQ Kuala Lumpur. The grand event brought together over 300 esteemed colleagues, collaborators, and guests from around the globe to celebrate nearly a decade of trust and success in the wealth management industry.

Under the theme “SHINING BRIGHT FOR 9 YEARS, WITH TRUST AS OUR GUIDING LIGHT,” the evening commemorated HKFA’s achievements and set the stage for future innovation in fiduciary services.

Global Trust Summit 2024: Industry Insights and Milestones

The event began with the Global Trust Summit 2024, an engaging platform for industry leaders to analyze current trends and explore future opportunities. The summit featured a retrospective milestone video celebrating HKFA’s achievements since 2015, followed by an inspiring keynote by Mr. Cyril Yeung, Founder of HKFA, who highlighted the company’s resilience, innovation, and client-focused approach. 

Mr. Yeung noted that “Throughout these wonderful years, relentless efforts have brought us to where we are today. Persistence, innovation, and a pragmatic approach have been the true driving forces behind our success. Looking ahead, HKFA will continue to reach a broader client base globally by enhancing professionalism, broadening service scopes, and striving to shine even brighter on the global stage.”

It also included a detailed analysis of a new Hong Kong-domiciled fund structure by Mr. Melvin Mui, COO of Hong Kong Trust Capital Management Limited, showcasing the launch of the innovative trust structure designed to meet the diverse needs of trust clients. Additionally, Mr. Keith Chan, Business Development Director of Inheritance Asset Management Limited presented the Global Review 2024, offering valuable insights into market trends and strategies for 2025.

A Night to Remember: 9th Anniversary Private Gala Dinner

Following the summit, the gala dinner was a celebration of camaraderie, achievements, and aspirations. Mr. Mong Chung Chee, President of Asia-Pacific Region of HKFA, opened the evening with heartfelt remarks, welcoming global guests to this momentous occasion.

The gala was filled with memorable highlights, including an introduction to HKFA’s growing presence in Dubai by Mr. Jason Tan, Vice President of UAE Region, who shared insights into the company’s market expansion. A symbolic strategic partnership agreement was signed between Mr. Jason Tan and Ms. Peini Huang of Kreston Menon Chartered Accountants, reinforcing HKFA’s dedication to serving high-net-worth clients. The evening also featured a celebratory 9th Anniversary Cake Ceremony, led by HKFA executives, symbolizing nine years of excellence and trust. Guests enjoyed a vibrant atmosphere with live music, exquisite dining, and ample opportunities for networking and reflection.

Looking Ahead: A Decade of Excellence and Beyond

The event concluded with a heartfelt closing speech by Mr. Mong Chung Chee, expressing gratitude to attendees and reaffirming HKFA’s dedication to setting new standards in the fiduciary industry.

As HKFA reflects on nine successful years, the company is poised to embrace future challenges with professionalism and innovation, ensuring continued excellence in wealth management services worldwide.

About HKFA:

Established in 2015, the main objective of HKFA is to educate and empower sophisticated and high-net-worth clients with global assets, offering tailored and comprehensive solutions to clients across the globe to safeguard family legacies and ensure seamless inheritance. With a commitment to professionalism and innovation, HKFA continues to pave the way for excellence in wealth management.

Media Contact

Organization: Hong Kong Fiduciary Association Limited

Contact Person: Ms. Catherine Choo

Website: https://www.trusthongkong.com/

Email: info@trusthongkong.com

City: Kuala Lumpur

State: Kuala Lumpur

Country: Malaysia

Release Id: 24122421872

The post HKFA’s 9th Anniversary Celebration Lights Up Kuala Lumpur with Unforgettable Gala and Global Trust Summit appeared on King Newswire. It is provided by a third-party content provider. King Newswire makes no warranties or representations in connection with it.

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Press Release

MEXC grows global reach with 17 new languages, strengthening its presence in emerging markets

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44 minutes ago

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December 24, 2024

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Seychelles, December 24, 2024 – MEXC, a leading global cryptocurrency exchange, today announced the addition of support for 17 languages on its website, including Dutch, Bulgarian, Czech, Danish, Greek, Hungarian, and Indonesian. This initiative further strengthens MEXC’s localized services, empowering cryptocurrency investors worldwide with a seamless and enhanced trading experience.

The new languages are now available on MEXC’s official website, with app integration to follow shortly. With this latest language update, MEXC now supports a total of 34 languages, reflecting not only the platform’s commitment to global growth, but also its dedication to cultural diversity and inclusion. This strategic expansion is set to impact several key areas:

1. Enhanced User Experience: Removing language barriers to provide a smoother and more accessible trading experience for users worldwide.

2. Accelerated Global Expansion: Meeting the diverse needs of users across different countries and regions, speeding up market coverage and penetration.

3. Expanded User Base: Attracting users from emerging markets with localized language options, further fueling platform growth and activity.

4. Cultural Inclusion: Showcasing respect for diverse cultures, strengthening MEXC’s global brand image, and fostering greater trust among users.

MEXC is dedicated to being “Your Easiest Way to Crypto.” With core advantages such as an extensive selection of trending tokens, everyday airdrops, extremely low fees, and comprehensive liquidity, MEXC has achieved remarkable milestones in 2024. The platform has grown to serve over 30 million global users, and recorded a threefold increase in trading volume year-on-year, reflecting strong growth momentum.

To better address the evolving investment needs of its global user base, MEXC continues to optimize multilingual support, upholding a user-first philosophy that ensures an efficient and reliable service experience. 

“Our addition of new languages is about more than just expanding our service—it’s about connecting cultures,” says Tracy Jin, VP at MEXC. “By removing language barriers, we are opening doors for investors around the globe to access the crypto economy effortlessly, ensuring every user experiences our platform at its full potential.”

Looking ahead, MEXC will further deepen its localization efforts to facilitate easier participation in cryptocurrency investments and promote the long-term development and adoption of the industry.

About MEXC

Founded in 2018, MEXC is committed to being “Your Easiest Way to Crypto.” Serving over 30 million users across 170+ countries, MEXC is known for its broad selection of trending tokens, frequent airdrop opportunities, and low trading fees. Our user-friendly platform is designed to support both new traders and experienced investors, offering secure and efficient access to digital assets. MEXC prioritizes simplicity and innovation, making crypto trading more accessible and rewarding.

MEXC Official Website｜X｜ Telegram ｜How to Sign Up on MEXC

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Disclaimer: The views, suggestions, and opinions expressed here are the sole responsibility of the experts. No Digi Observer journalist was involved in the writing and production of this article.

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